Tesla's Model S Surpasses Sales Target and 40 kWh Battery is Cancelled

Over the weekend Tesla announced that Model S sales have exceeded their targeted number of 4,500 units, making their first quarter sales fully profitable. Also announced, Tesla will not produce its 40 kWh battery, as demand for the small battery is only at four percent of production totals. Elon Musk, co-founder and CEO of Tesla Motors said in a recent interview that he is "incredibly proud of the Tesla team for their outstanding work. I would also like to thank our customers for their passionate support of the company and the car. Without them, we would not be here." Because of the lack of demand for the smaller battery pack, Tesla is giving customers who ordered it the 60 kWh battery pack, however the range will be limited by software to that of the 40 kWh battery pack. Acceleration and top speed will be that of the bigger pack, and current and future customers have the option to upgrade their range to that of the larger pack. All models with the 60 kWh battery pack will be built with a supercharger, and although this is a cost risk for Tesla, the company believes that its customers will want the upgrade to receive unlimited long distance travel for life. This will also help to improve the resale value of the vehicle, even if the car is never driven long distances. Source: Tesla
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